Why You Should Check Your KiwiSaver Fund Type (and Why Staying in the Default Fund Might Cost You)
Why Your KiwiSaver Fund Type Matters More Than You Think
If you’re like many New Zealanders, you may have joined KiwiSaver and never looked back. But what if your money is quietly sitting in a fund that’s not working hard enough for you?
Choosing the right KiwiSaver fund type can add tens—or even hundreds—of thousands of dollars to your balance by retirement. And doing nothing? It might cost you just as much.
What Is a KiwiSaver Fund Type?
KiwiSaver providers offer a range of fund types, each with a different risk and return profile. The main categories are:
🟢 Conservative: Low risk, low return (mostly cash and bonds)
🟡 Balanced: Medium risk, moderate return (mix of bonds and shares)
🔴 Growth: Higher risk, higher return (mostly shares)
⚪ Aggressive / High Growth: Even more exposure to shares and property
🔵 Default: Government-assigned, conservative-type funds for people who didn’t choose one
⚠️ The Risks of Staying in a Default KiwiSaver Fund
If you never chose a fund, you’re probably in a default fund—which is designed to be a low-risk starting point, not a long-term solution.
✅ Pros of default funds:
Low volatility
Safer for short-term goals
Simple and low effort
❌ Cons of default funds:
Lower long-term returns
May underperform inflation over time
You could retire with significantly less
📈 Example: Default vs Growth Fund
Let’s say you're 30 years old and earning $65,000 per year.
In a default/conservative fund, you might retire with around $300,000
In a growth fund, that number could be $500,000 or more
That’s a $200,000 difference—from making a one-time switch
🧠 Why Don’t More People Switch?
Most people stay in their default fund because:
They don't know it matters
They assume default = safe = best
They’re unsure what fund type suits them
But doing nothing can be riskier than taking action—especially if you're under 50 and have years to grow your balance.
🔄 How to Check and Change Your KiwiSaver Fund
Log into your KiwiSaver provider’s website
Check your current fund type
Use the Sorted Fund Finder to compare options
Switch funds based on your risk profile, life stage, and goals
🏡 When to Use a Conservative Fund
There are situations where a conservative (or even default) fund makes sense:
You’re buying a first home within 1–3 years
You’re nearing retirement age
You’re very risk-averse and prefer capital stability
Otherwise, a balanced or growth fund usually provides better long-term outcomes.
📣 Talk to Us Today – Get Personalised KiwiSaver Advice
Not sure what fund is right for you?
Worried about switching at the wrong time?
Want help reviewing your current settings?
✅ We’re here to help you make the most of your KiwiSaver.
➡️ Talk to us today for a free KiwiSaver fund review.
We’ll help you:
Understand your risk profile
Match you with the right fund for your goals
Potentially boost your long-term retirement savings
📞 Call us: 06 304 7004
📧 Email: [email protected]
📅 Book a chat: Link to calendar